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TMI Blog2024 (5) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... ported escaped income assessment. 4. Considering that the Principal Seat has delivered a judgment on 15.01.2024 in Writ Petition No. 1945/2023 (The New India Assurance Company Limited Vs. The Assistant Commissioner of Income Tax and Others) 2014 SCC Online Bom 146, we are referring to the short issue raised in this Petition. By the judgment delivered in The New India Assurance Company Limited (supra) in relation to the notice issued for Assessment Year 2013-2014, this Court has come to a conclusion in paragraph Nos. 36 to 39 as under :- "36. Therefore, in the present case, as the foundation of the entire reassessment proceeding, viz., the notice issued in June 2021 itself was barred by limitation in view of non-applicability of Notification No. 20/2021, the superstructure sitting thereon, viz., the reassessment proceedings initiated pursuant to judgment in Ashish Agarwal will also be regarded as beyond time limit. Therefore, on this ground as well, the impugned reopening notice dated 28th July 2022 issued for AY 2013-14 in petitioner's case is barred by limitation and deserves to be quashed and set aside. Alternatively, it is well settled that a notice under Section 148 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the affidavit in reply; (b) As regards applicability of Section 3 of TOLA - exclusion of Covid period, this argument is, in effect, nothing but the theory of travel back in time which was urged by the Revenue to support the reopening notices issued between 1st April 2021 to 30th June 2021 before this Court, as well as other High Courts [and which eventually led to the judgment in Ashish Agarwal (Supra)]. As noted earlier, this Court and other Courts have already snubbed the relate back/travel back in time theory and also the Instruction No. 1 of 2022; (c) As regards applicability of Notifications No. 20 of 2021 dated 31 March 2021 and No. 38 of 2021 dated 27th April 2021 extending the time limit even for AY 2014-15 and it is extended till 30 June 2021, respondent, in other words, argues that the Notification No. 20 of 2021 seeks to extend the time limit inter alia for issuing notice under Section 148 which was expiring on 31 March 2021 not only under the provisions of the Act, but would also include the time extension in the Act by virtue of TOLA. To put in another way, the time limit expiring on 31 March 2021 specified in Notification No. 20 of 2021, according to responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will not be used to build a new edifice where none existed earlier by ignoring express statutory provisions dealing with a subject and thereby to achieve something indirectly which cannot be achieved directly. In the present case, Revenue's argument, if accepted, would be in conflict with the above law as despite the express language of 1 proviso to Section 149, reopening notice for the AY 2013-14 would be permitted to be issued beyond 6 years on the pretext that the Hon'ble Supreme Court in exercise of its powers under Article 142 permitted them to do so and otherwise, they would be remediless. On the contrary, while permitting the Revenue to re- initiate the reassessment proceedings, the Apex Court also granted liberty to assessees to raise all defences available to the assessee including the defences under Section 149 of the Act. The Apex Court observed that its order will strike a balance between the rights of the Revenue as well as the respective assessees. Moreover, in Siemens Financial (Supra), this Court has already considered a similar contention of the Revenue and held that equity has no place in taxation or while interpreting taxing statute such intendment woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Supreme Court would otherwise be unnecessary; (f) The submission that the Apex Court, in exercise of power under Article 142 of the Constitution, has deemed the notices issued between 1st April 2021 to 30th June 2021 under Section 148A (b) of the Act issued within limitation and by following the manner of computation of limitation provided in TOLA, the days from 1st April 2021 to 30th June 2021 would stand excluded and, therefore, the notices could be deemed to be issued on 31st March 2021, we find it to be rather fallacious. The fallacy of this contention of Revenue is conspicuous inasmuch as if the notices issued under Section 148 between 1st April 2021 and 30th June 2021, which according to them, are deemed to be issued on 31st March 2021, then it is obvious that the provisions of the new reassessment law introduced by the Finance Act, 2021 cannot apply as they came into force w.e.f. 1st April 2021 and onwards. Ashish Agarwal (Supra) in no uncertain words stated that the new provisions have to apply to all such notices. Therefore, the argument urged is completely contrary to law as well as the binding directions of the Hon'ble Supreme Court; (g) As regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the defences under Section 149 of the Act. This specific and express directions cannot be set at naught. Accepting this contention of the Revenue would be a travesty of justice. 38. In the circumstances, in our view, the notice issued under Section 148 of the Act, impugned in this petition, for AY 2013-14 is issued beyond the period of limitation. 39 . Having decided in favour of assessee/petitioner on this issue of limitation, we are not discussing the other grounds of challenge raised in the petition. Petitioner may raise all those contentions independently in any other proceeding." 5. In similar circumstances, insofar as the notice issued for Assessment Year 2014-2015 is concerned, this Court at the Principal Seat in Writ Petition No. 450/2023 (Original Side), Godrej Industries Limited versus The Assistant Commissioner of Income Tax and others, has decided in favour of the Assessee, vide judgment dated 28.02.2024. This Court relied upon the observations in The New India Assurance Company Limited (supra) and held that the notice issued for the Assessment Year 2014-2015, is also barred by limitation. 6. In view of the above, this Writ Petition is allowed. The impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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